Insurance for an Apartment Building in Riga: How Much Does It Cost?

Groups of Objects

Depending on what is specified in the insurance policy as the insured object - an apartment, a private house, or common property (an apartment building) - the following can be insured:

• Intercom

• Surveillance cameras

• Heating equipment

• Electrical distribution board

• Entrance doors

• Elevator/elevator equipment

• Railings at the entrance

• Porch railings

This group of objects is classified as structural elements of the building and internal and external engineering communication systems. When insuring an apartment, the legally associated ideal shares of common property (common areas, doors, roof, elevators, stairwells) are also insured.

• The group of landscaping elements includes: automatic barriers, automatic gates, gates, courtyard lighting elements, benches in the yard. All listed objects, as well as canopies, mailboxes, fences, garden fireplaces, swimming pools, gates and their automation, pedestrian paths, outdoor lighting, coverings, etc., are elements of landscaping.

They are also subject to insurance if they are located on the land plot related to the building or are directly connected to it.

• Plantings are elements of landscaping, and they can also be insured, except for annual plants. Plantings can only be insured against specific risks - for example, fire, damage from vehicle impact, actions of third parties.

• Signage (for example, a sign "entry by pass only"). This can be classified as property located on the territory related to the residential building (for example, in the yard) if it is intended for use outside the building. Property located outside the insured territory is insured only if this is explicitly provided for in the contract and insurance conditions.

• Asphalt pavement (from the street or in the yard) is classified by some insurers as elements of landscaping, while others refer to them as parking areas or paths - that is, they consider these objects indivisible and functionally related to the house, as they are located on the same land plot as the apartment building and, accordingly, belong to the co-owners of the house.

For each of the aforementioned groups of objects, certain sub-limits are usually established: for example, 1,000 euros, 10,000 euros, etc., in one insurance period. Insurance applies to all specified objects only if they are clearly included and marked in the insurance policy, as well as if this is provided for in the insurance conditions. It is important to note that the conditions vary by insurance company.

Property can be insured against the following risks:

• Natural disasters (for example, earthquake, lightning, storm, flood, heavy rains, hail, heavy snowfall);

• Risks related to fire (fire, explosion, lightning strike);

• Water leaks, accidents of engineering communications;

• Accidental or unlawful actions of third parties (for example, theft, vandalism, robbery, repair work by neighbors, incidents involving vehicles, etc.);

• Power supply interruptions, surges;

• Falling objects;

• Breakage of glazing;

• Other risks: collision, accident involving a vehicle, electronic risks, damage caused by tenants, icing of overhead engineering communications, ground collapse, damage resulting from loss of rental income, pet insurance, home assistance.

There are Exceptions

If the object is insured "against all risks," the insurer usually compensates for losses arising from any sudden and unforeseen external impacts, except in cases specified in the "exclusions" section.

In turn, non-insurable risks are indicated in the relevant conditions. Most often, refusal of insurance may occur if it concerns:

• Buildings that are in a state of emergency and apartments in such buildings;

• Apartments used for commercial activities;

• Apartments rented out for short-term leases;

• Unauthorized constructed or reconstructed objects.

• Losses arising from prolonged, gradual processes - natural wear and tear, corrosion, abrasion, mold formation, etc.;

• Violations of operational requirements established by the regulations of the Republic of Latvia or instructions for the use of a specific object;

• Changes in groundwater levels or overflow of stormwater or sewage systems;

• Infiltration of precipitation into the building through the roof, windows, doors, seams of the property, foundations, waterproofing, and other structures, etc.